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12
               The Liberal Party of
              Australia’s Campaign
                            Nicholas Barry

The 2016 federal election saw the Coalition returned to government with
a reduced majority after a troubled term in office in which it struggled
with bad poll numbers, was unable to implement key elements of its
legislative agenda, and ultimately replaced first-term prime minister
Tony Abbott. The aim of this chapter is to analyse the Liberal campaign
in 2016, focusing particularly on the strengths and weaknesses of the
campaign strategy, the state of the party organisation and the broader
implications of the result for the party system. The first section of the
chapter evaluates the party’s campaign strategy. I argue that some of
the criticisms of the campaign were overstated given the difficult context
in which it took place. However, there were weaknesses, most notably
the failure to put forward major policies to substantiate the focus on jobs
and growth and address voters’ underlying sense of economic insecurity.
The second section of the chapter examines the organisational health
of the Liberal Party in light of the 2016 campaign. It argues that the
election demonstrated a number of problems within the Liberal Party
organisation, particularly relating to factional influence over preselection
processes in New South Wales (NSW), the under representation of women
and a relatively weak capacity to mobilise grassroots supporters. The third
section of the chapter examines the implications of the election for the
Liberal Party’s ideological direction and position in the party system.
It argues that the result is likely to exacerbate existing tensions between
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      moderates and conservatives within the party, and the growing influence
      of Pauline Hanson’s One Nation (PHON) and the Nick Xenophon Team
      (NXT) also point to a possible fracturing of the centre-right vote base.

      Campaign strategy
      In a sense, the Liberal campaign for a second term began on the night
      Turnbull won the leadership in September 2015. Speaking to the media
      after winning the party-room ballot, he said he would adopt ‘a different
      style of leadership’ from Abbott and he signalled a shift towards a more
      progressive liberal approach to government, expressing the optimistic
      view that ‘[t]here has never been a more exciting time to be alive’, and
      that Australia ‘has to be a nation that is agile, that is innovative, that is
      creative’ (Turnbull 2015).
      The Liberal strategy during the election campaign continued in this vein
      with a relatively positive message focused primarily on economic growth,
      jobs and innovation. This was reflected in the party’s television advertising.
      Industry experts estimate that around only $1.4 million of the $6 million
      television advertising budget was spent on explicit attack ads (Blumer
      and Conifer 2016). Instead, the most prominent Liberal advertisement
      during the campaign promoted its ‘Plan for a Strong New Economy’, and
      this slogan received prime billing on the party’s website throughout the
      campaign (Liberal Party of Australia (LPA) 2016a). The campaign was
      also heavily oriented around Turnbull himself. The two advertisements
      receiving most airtime during the campaign featured Turnbull speaking
      directly to the camera, and much of the campaign material was marked
      with a ‘presidential crest’ inscribed with ‘The Turnbull Coalition Team’
      (Scott and Meers 2016). Despite the government’s relatively positive
      focus, the Liberal campaign was light on policy detail. The major policies
      on which it focused were a company tax cut announced in the 2016
      Budget, which was handed down shortly before the campaign began
      (Henderson 2016), and a $2 billion crackdown on welfare fraud that was
      not announced until the final week of the campaign (Dziedzic 2016).
      Although the central message of the campaign was positive, it had important
      negative elements too. Prior to the start of the official campaign period,
      the government sought to target Labor as a risk to the economy because
      of the impact its negative gearing policy would have on house prices
      (see Massola 2016a). During the campaign, they also used the dispute
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between the Country Fire Authority and the Victorian Labor government
over a new enterprise bargaining agreement to portray Labor as beholden
to the union movement (Australian Broadcasting Corporation (ABC)
2016). They attacked Labor over its policy costings, particularly after Bill
Shorten revealed that Labor would run higher deficits over the first four
years of the budget cycle. The Liberals also ran an attack ad in the second
half of the campaign featuring a ‘tradie’ who claimed that Labor was going
to war on the economy (LPA 2016b), and an ad attacking Labor on the
issue of asylum seekers, particularly in the final weeks of the campaign.
Eleven days out from the election, Malcolm Turnbull criticised Labor’s
promise to ban temporary protection visas, claiming that it would:
   send an absolutely unequivocal signal to the people smugglers that under
   a Labor government, anyone who manages to get to Australia on a boat
   will be able to stay here permanently. It will be used aggressively as
   a marketing tool by people smugglers (quoted in Massola 2016b).

In some marginal seats, Liberal Party candidates also developed tailored
local campaigns that were often more negative than the national campaign.
Notable examples include Michelle Landry in Capricornia, who ran
advertisements attacking Labor and the Greens on asylum-seeker policy
and mining (Scott and Meers 2016), George Christensen in Dawson,
who campaigned on preventing Syrian refugees from being settled in
his electorate, and Luke Simkins, who was accused of running a smear
campaign against Anne Aly, Labor’s candidate for Cowan, who is Muslim
(Perpitch 2016).
A number of major criticisms were made of the Liberal campaign after
the disappointing election result. The first criticism related to the timing
of the election. After trailing Labor in 30 consecutive Newspolls, there was
an immediate increase in the government’s popularity after Turnbull took
the leadership from Abbott. It pulled two points ahead of Labor in the two-
party preferred vote, while Turnbull opened up a 34-point lead over Bill
Shorten as preferred prime minister (Keany 2015; Sydney Morning Herald
2015). However, Turnbull’s honeymoon period proved short-lived and
his popularity declined significantly over the first half of 2016 (Hudson
2016; see also Beaumont 2016). Some argued that Turnbull should have
called the election shortly after the leadership change to capitalise on the
government’s boost in the polls (e.g. MacCallum 2016).
Nonetheless, going to an election quickly would have carried risks for the
government. After all, the previous Labor government had also received
an immediate boost in the polls after Julia Gillard took the leadership
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Double Disillusion

      from Kevin Rudd, and that proved to be short-lived. In addition, the
      change in leadership inevitably left the government open to a charge of
      instability, so the government may have wanted to have more time to
      create a sense of stability and to deal with the underlying policy issues that
      had contributed to the Abbott government’s unpopularity. Comments
      from the 2016 Liberal Campaign Director, Tony Nutt, in a post-election
      speech to the National Press Club broadly support the latter view. Nutt
      argued that voters ‘wanted to know that Malcolm Turnbull and his team
      had a credible plan, which they were committed to and would implement
      going forward’ (Nutt 2016). In addition, although Nutt does not allude
      to this in this speech, another important consideration in the timing of
      the election related to campaign organisation. The previous Liberal Party
      Director, Brian Loughnane, was married to Abbott’s high-profile chief of
      staff, Peta Credlin, and he stepped down within weeks of the change in
      leadership (Uhlmann and Glenday 2015). As well as bringing in a new
      director (Nutt), the party needed time to craft a new campaign strategy,
      particularly given the different leadership styles and policy approaches of
      Abbott and Turnbull. The organisation of the Labor campaign in 2013
      had been disrupted by the leadership change shortly before the election,
      and the Coalition was no doubt keen to leave enough time before the
      election to properly prepare. In sum, it is impossible to know for sure
      whether an earlier election would have produced a better outcome for
      the government, but it is easy to see why, at the time, Turnbull may
      have wanted to leave a longer gap between the leadership change and
      the election.
      A second criticism from within the Liberal Party was that the campaign
      should have been more negative in its orientation, with a greater focus
      on attacking Labor and Bill Shorten. For example, Abbott-supporter and
      dumped minister Senator Eric Abetz asked: ‘[W]hy did we not run on the
      carbon tax? Why did we not run on union corruption?’ (Meers 2016).
      However, Nutt defended the campaign strategy against this criticism at
      his Press Club address, arguing that it had held up well and that adopting
      a more strongly negative approach would have been counterproductive:
         While their [i.e. Labor’s] negativity had an effect on the Liberal Party
         primary vote those votes didn’t always flow to Labor. Instead Labor’s
         negative campaign helped drive a high minor party an [sic] independent
         vote. The danger was that if the Coalition also went to that level of
         negativity, it would have only boosted the other vote … The test here
         is that the published polls at the start of the campaign closely matched

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12. The Liberal Party of Australia’s Campaign

   the actual result and the polls at the end of the campaign. That is the
   campaign was not undermined by being positive but was instead held up
   against strong negative attacks from Labor, the unions, Greens and others
   by positive appeals while not failing to strongly contest our opponents on
   key issues in relevant ways when appropriate (Nutt 2016).

Thus, in Nutt’s view, the primarily positive Liberal campaign had proved
effective at negating Labor’s attacks. A further problem for the Liberal
campaign was that advancing a heavily negative campaign, particularly
one focused on asylum seekers and the carbon tax, would have sat
uneasily with the image Turnbull cultivated before becoming prime
minister, and the direction he set for government immediately on taking
office. The decline in his popularity coincided with him taking a series of
decisions that seemed to contradict this positive liberal rhetoric, so there
is reason to question whether a more strongly negative campaign would
have been beneficial for the government.
A third criticism of the campaign came from a number of party insiders
who argued that Turnbull and Nutt had failed to respond effectively to
Labor’s claim that the government was planning to privatise Medicare
(Labor’s so-called ‘Mediscare’ campaign, see Elliot and Manwaring,
Chapter 24, this volume). Former Liberal director and trade minister
Andrew Robb reportedly agrees with this criticism in the internal review
he conducted into the 2016 Liberal campaign (Murphy 2017). Nutt
acknowledged the impact of the Mediscare campaign, claiming that it
‘affected votes and seats and contributed to the defeat of a number of
MPs’ (Nutt 2016). However, he sought to shift the blame onto Labor,
describing Mediscare as a ‘cold-blooded lie’ that involved ‘[c]ynically and
cruelly exploiting some of the most vulnerable in our society’ (Nutt 2016).
He also argued that the Liberals had identified Mediscare as a threat early
on, that ‘resources were provided for immediate rebuttal on social media
and via earned media appearances’, and that ‘[f ]urther TV broadcasts and
direct media messages were adjusted to include guaranteed health funding
to provide a positive contrast’ (Nutt 2016). One example of this was the
‘Four Reasons to Support the Coalition’ advertisement, which received
heavy airplay in the final weeks of the campaign and emphasised that
‘Medicare and education funding is guaranteed’ (LPA 2016c).
In addition, although the government was relatively slow to respond to
Mediscare in the early stages of the campaign, in many ways, the problem
predates the official campaign period. Labor generally enjoys an advantage

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      over the Coalition when voters are polled on which party is better able
      to handle health policy, and the Coalition was particularly vulnerable
      on this issue after the unpopular 2014 Budget, which attempted to cut
      projected spending on hospitals and introduce a Medicare copayment.
      One important effect of Mediscare, then, was the way it pushed health
      policy onto the agenda, putting a policy area advantageous to Labor at
      the forefront of voters’ minds. This complicated the response to Mediscare
      because focusing too much attention on it risked distracting from the
      issues that the government wanted to dominate the campaign. Once
      again, this is in line with Nutt’s own view:
         Research found that the Mediscare campaign also helped to shift focus
         of the campaign onto health and away from the economy. To provide
         similar weight to rebuttal of this attack would not have neutralised it.
         It would actually have raised it further as the campaign issue and would
         have taken valuable resources and focus away from the Coalition’s positive
         appeals. The best way to practically counter it was to shift focus [sic] of
         the campaign back to the economy and jobs (Nutt 2016).

      Nonetheless, although Nutt may be right that focusing on other issues such
      as jobs and growth was the best way of combating Mediscare, ultimately
      it is doubtful whether this central feature of the government’s campaign
      was adequately prosecuted. As mentioned above, the government put
      forward relatively few major policy announcements during the election.
      This meant there was little policy detail to give substance to the rhetoric
      about ‘jobs and innovation’ and ‘jobs and growth’, and it is likely that
      more was needed to address the sense of economic insecurity felt by voters
      in marginal electorates, especially in western Sydney where the Coalition
      lost a number of seats (Wade 2016).
      In sum, the Liberal campaign, which came at the end of a difficult first
      term in office, was oriented around a relatively positive message about jobs
      and innovation. Although there was significant internal criticism of the
      campaign for not being negative enough or for not effectively dealing with
      the challenge of Labor’s ‘Mediscare’ campaign, there are reasons to treat
      these criticisms with a degree of caution. A negative campaign approach
      would have been in conflict with Turnbull’s attempt to promote a more
      positive image, while ‘Mediscare’ was difficult to combat given that health
      policy had been such a negative issue for the government since 2014. It is
      also important to bear in mind that the campaign was trying to convince
      voters to re-elect a government that had been unpopular for most of its
      first term in office, and whose leader had been replaced after little more
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12. The Liberal Party of Australia’s Campaign

than two years as prime minister. In this context, simply getting re-elected
was a challenge in itself. In the end, the major problem with the campaign
may have been the same problem that plagued the government during its
first term—the party did not come up with a concrete set of policies to
give substance to its rhetoric around jobs and growth and help address
voters’ sense of economic insecurity.

Party organisation
The 2016 election also highlighted a number of significant organisational
problems in the Liberal Party. Perhaps the most evident was the influence
of factional powerbrokers over preselection contests, particularly in the
NSW division. This problem is well established in the literature on party
organisation in Australia (see Gauja 2015) and it has also been highlighted
in internal reviews of the Liberal Party’s national organisation and the
NSW Division (see Staley 2008: 23; Reith 2011: 23). The most recent of
these reviews—conducted by former prime minister John Howard in the
wake of the 2013 federal election—recommended the use of plebiscites to
democratise the preselection process, reduce the influence of factions and
make members feel more involved in the party. However, the reforms that
were eventually adopted fell well short of these recommendations. The
NSW Council instead adopted a compromise proposal to trial plebiscites
for preselections in six State and federal seats between 2016 and 2019
(Hurst 2016). This compromise proposal was condemned by critics
within the party who argued it did not go far enough and State Council
delegates audibly laughed when Turnbull claimed that the Liberal Party
was ‘not run by factions’, or ‘by big business or by deals in backrooms’
(Murray 2015).
Although the failure to act in response to party reviews is not new
or unique to the Liberals, there were a number of very contentious
preselection contests in the lead-up to the 2016 election that attracted
significant media attention and underlined the need for reform in NSW.
One notable example was the conflict over preselection for the NSW
Senate ticket. In March 2016, centre-right faction candidate Hollie
Hughes won the number one position on the ticket ahead of Minister for
International Development and member of the conservative-right faction
Concetta Fierravanti-Wells, who was moved down to the second position,
while high-profile candidate Jim Molan was relegated to third spot.

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      Particular criticism was directed at the role of Michael Photios and Nick
      Campbell, factional powerbrokers within the Liberal Party and lobbyists,
      who were allowed to exercise proxy votes and reportedly ‘worked the
      room’ to ensure Hughes was placed ahead of Fierravanti-Wells and Molan
      (Crowe 2016).1
      There were also a number of other rancorous preselection contests in
      NSW. In the seat of Mackellar, veteran Liberal MP Bronwyn Bishop, who
      had been forced to resign as Speaker of the House after a scandal over
      her travel expenses, had wanted to recontest the seat, but ultimately lost
      the preselection contest to Joseph Falinski (Dole 2016). In the lead-up
      to the preselection vote, there was again public criticism of the process
      from Liberal Party members angry at their lack of voting power and the
      dominance of factions. For example, party member and conservative legal
      academic David Flint complained to the ABC that ‘Menzies would be
      horrified if he knew that potential members of Parliament were not being
      chosen on merit, but were being chosen because of their allegiance to
      a factional powerbroker’ (Duffy and Kleinig 2016). In Hughes, MP Craig
      Kelly was also under threat from local councillor Kent Johns. Although
      Johns ultimately decided not to run, reportedly due to intervention from
      Turnbull (Trembath 2016), the dispute was played out in the media, with
      talkback radio host Alan Jones at one point praising Kelly on air and
      warning Johns that ‘if you put your head up, there’ll be a hell of a story
      that’ll be told about you’ (Jones, quoted in Nicholls and Robertson 2016).
      While it is difficult to ascertain exactly how much electoral damage these
      disputes did to the party, it is clearly not the kind of publicity it was
      looking for in the lead-up to the election. It also has further consequences
      in that it undermines the force of the longstanding Liberal criticism of
      Labor for being controlled by factional powerbrokers and wracked with
      internal instability. The experience of 2016 therefore suggests that reform
      to preselection processes may have a pragmatic electoral rationale, as well
      as a democratic one.

      1     Although Hughes initially offered to swap positions with Fierravanti-Wells, the situation was
      complicated by Turnbull’s decision to call a double dissolution, which would see a full Senate rather
      than a half-Senate election, and a deal with the Nationals on the joint Senate ticket, which saw
      Hughes and Fierravanti-Wells fighting over the fourth and difficult-to-win sixth positions on the
      ticket, rather than first and second (Robertson 2016). The NSW State executive ultimately stepped in
      to give the fourth position to Senator Fierravanti-Wells, reportedly after the intervention of Turnbull
      (Tarasov 2016).

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A further problem highlighted by the election is the under representation
of women among Liberal MPs. The 2016 election produced the worst
outcome in 25 years with the number of female Liberal MPs in parliament
reduced to 18 out of 84 (Norman 2016). This is not surprising given
that women generally missed out on preselection for the safe Liberal
seats that became available in 2016. Six experienced Liberal MPs in safe
seats—Philip Ruddock, Bishop, Ian Macfarlane, Sharman Stone, Bruce
Billson and Robb—retired at the 2016 election and, in all six cases, a male
candidate was preselected by the Liberals to replace them. Such a high
degree of under-representation is normally a good indication that there are
underlying structural barriers to the preselection of women (see Phillips
2004). It also came within months of a 2015 report presented to the
Federal Executive that called for 50 per cent of Liberal MPs to be women
by 2025 (Tomazin 2015). The fact the party went backwards in 2016
shows how far it has to go to meet this target. Perhaps recognising this,
the Federal Executive signed off on a ‘gender diversity reform program’ in
the wake of the election. Although a number of women within the party
welcomed this development, it remains unclear whether it will be enough
to meet the target. The extent of the problem in 2016 suggests that more
far-reaching reforms such as the introduction of quotas for preselected
candidates may be needed, as Stone has proposed (Greene 2014).
A further problem highlighted by the 2016 election campaign is the
Liberal Party’s weak capacity to engage in effective grassroots campaigning.
This kind of concern has deep roots in the history of the non-Labor side
of politics, and fed into the formation of the Liberal Party itself. Party
founder Robert Menzies felt that Labor’s mass party structure gave it
an advantage when it came to election campaigning because it could
mobilise its membership base and affiliated unions to provide the ‘boots
on the ground’ needed to engage in the locally oriented activities that were
characteristic of campaigning during the pre-television era (Brett 2003).
The structure of the Liberal Party was thus designed to mimic some
features of Labor’s mass party structure, including a large rank-and-file
membership base with an ongoing involvement in the party’s activities.
However, in recent decades, party membership has declined in both
major parties to the point that they now have ‘a mass party model of
organisation without the “mass” of members required to give it vitality
and legitimacy’ (Errington 2015: 17).

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      Although the need for a strong party membership base declined somewhat
      with the emergence of television, which became the focal point for
      modern campaigning, the 2016 campaign illustrated that having a strong
      ‘ground game’ has renewed importance in a digital age. The emergence
      of digital media has enabled parties to gather more sophisticated data
      on voters using social media analytics. Key voting groups can then be
      targeted more accurately through online advertising and direct contact
      with party volunteers. Coordinating and engaging in this kind of direct
      contact requires an extensive field operation with party volunteers to
      run the ‘ground game’ and contact voters directly through phone calls
      and door knocking. At the 2016 election, Labor had around 15,000
      volunteers who reportedly had 1.6 million ‘contacts’ with voters during
      the campaign (Murphy 2016; see also Manwaring, Chapter 11, this
      volume). In addition, the union movement ran a separate and extensive
      field operation, as did GetUp! (see Halpin and Fraussen, Chapter 17,
      this volume; Vromen, Chapter 18, this volume). Comparable figures are
      not available for the Liberal Party, but reports suggest that it was unable
      to match these numbers and that ‘[c]onservatives are … trailing badly
      … when it comes to large-scale, rapid, mobile grassroots campaigning,
      which, of course, can be the difference between winning and losing’
      (Murphy 2016). Robb’s review of the 2016 Liberal campaign reportedly
      echoed these concerns (Murphy 2017), while Nutt (2016) has also argued
      that the Liberals are at an organisational disadvantage:
         In terms of field campaigns, the Labor Party and the unions and groups
         like GetUp! have enormous resources at their disposal. They are able to
         build resources, aggregate resources, have a full-time campaign resources
         staff and personnel, have systems, have equipment to impact the vote
         during campaigns and prior to campaigns. So they are professionalising
         themselves all the time and the Liberal Party needs also to professionalise
         itself further.

      Nutt also called for Australian business to build its capacity to campaign
      on policy issues both during and outside the official election period.
      Considering the capacity of the mining industry and pubs and clubs to
      organise effectively against a number of major policies put forward by
      the Gillard Labor government (see Bell and Hindmoor 2014; Panichi
      2014), Nutt may be underestimating the existing campaigning power of
      business. Nonetheless, he is right that there are currently no right-wing
      organisations in Australia that have the capacity to organise the sort of
      grassroots campaigns that the union movement and GetUp! have run

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in recent years. In light of this, it would not be surprising if Australian
conservatives attempt to strengthen their capacity to engage in grassroots
campaigning over the next few years.
Overall, the 2016 election highlighted some significant organisational
problems for the Liberal Party. Although organisational reforms are
available that could help the party effectively address the problem of
factional control and the under-representation of women, these reforms
are likely to be opposed by factional powerbrokers whose influence would
be weakened. Those pushing for reform are only likely to overcome this
internal resistance when these organisational problems become clear
barriers to electoral success (see, more generally, Barry 2015). Given
that the Turnbull government was returned to office—albeit with
a reduced majority—it seems unlikely that the problems will be viewed
as urgent enough to warrant the major reforms required to properly
address them. The exception here might be the call for the Liberal Party
and other conservative organisations to build a stronger capacity for
grassroots campaigning as this would not challenge the power of factional
powerbrokers, at least in the short term. This would also be in keeping
with the longer-term trend whereby successful campaign innovations
by one of the major parties are quickly copied by the other (see Mills
2014: 265).

Leadership, ideology and the party system
Although he did not face any immediate challenge to his leadership in
the aftermath of the election, Turnbull’s position was weakened by the
closeness of the result. In the days following the election, a number of
MPs were openly critical of the Liberal campaign, with WA Senator David
Johnston describing it as ‘shocking’ and stating that ‘we are light years
away from relating to people at the moment’ (quoted in Burrell 2016).
Others (anonymously) criticised Turnbull more directly, stating that he
had ‘no authority’ (quoted in Coorey 2016). Matters have been further
complicated by former prime minister Abbott’s continuing presence in
the party room. Although the chances of Abbott making a comeback
seem remote, his comments to the media since the election have been an
ongoing source of distraction for the government (e.g. Anderson 2017).

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      The election result also left the government in a difficult parliamentary
      position. The slim nature of the government’s lower house majority
      means that Turnbull is vulnerable to threats from Liberal MPs to
      cross the floor, or simply abstain from voting for contentious pieces of
      legislation. The Nationals may also decide to flex their muscles on policy
      questions, particularly given that they have increased their parliamentary
      representation—albeit by one seat. In the aftermath of the election, they
      succeeded in using their improved position to secure an extra position in
      Cabinet (Kelly 2016), and this is just one indication of the complexities
      posed for Coalition politics.
      Although the government’s aim in calling a double dissolution was to
      clear out the micro parties from the Senate, the composition of the new
      chamber has also created challenges for the government. With only 30
      Coalition Senators elected, it needs to win the support of an additional
      nine Senators to get its legislation through. On matters where they do
      not have the support of the opposition, this means the government must
      negotiate with the 20 crossbenchers. This includes two crossbenchers—
      David Leyonhjelm and Jacqui Lambie—who were targets of the Senate
      electoral reforms that the government pushed through prior to the double
      dissolution, and nine Greens Senators who are ideologically opposed
      to key aspects of the government’s legislative agenda. The composition
      of the Senate has not prevented the government passing some key policies
      since the election, such as the industrial relations changes that were the
      formal trigger for the double dissolution, or company tax cuts (Coorey
      2017). However, it has also run into difficulties with other major pieces of
      legislation, such as changes to citizenship laws (Gothe‑Snape 2017) and
      higher education funding (Karp 2017).
      The Liberals may also be confronting a more fundamental challenge
      in the next few years because the election results point to a possible
      fragmentation of the right-wing vote in Australia. The rise of PHON
      in the late 1990s created major electoral problems for the Liberal Party,
      particularly in Queensland, and it contributed to the near defeat of the
      Howard government at the 1998 election. The implosion of the party,
      combined with the Howard government’s shift to the right on refugee
      policy and emphasis on security in the wake of the 9/11 terrorist attacks,
      helped the Coalition win back these voters. Although PHON’s support
      in 2016 was well short of its peak in the late 1990s, it received over
      9 per cent of the first preference Senate vote in Queensland and, across
      the country, four Senators, including Hanson herself, were elected in
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2016. With rising support for anti-Muslim/anti-immigration parties in
Europe and the US, there must be a real risk that PHON’s support will
grow, eating into the Coalition’s conservative base. This is a further reason
why Turnbull is likely to find it difficult to move the Liberals in a less
conservative ideological direction.
The success of the NXT in South Australia (SA) represents a different
kind of threat to the Liberals. Xenophon’s blend of populist centrism was
appealing enough to win just over 21 per cent of the lower house first
preference vote in SA, to pick up the Liberal seat of Mayo, and to go close
to winning Grey. This suggests that Xenophon is likely to remain a lower
house threat to the Liberals in SA, and that it needs to be wary of taking
moderate voters for granted.
In all, the 2016 federal election has drawn attention to the ideological
divisions confronting the Liberal Party. If it moves in an overly conservative
direction on social issues, it risks alienating moderate supporters in States
such as SA, where the NXT exists to sweep up their votes, and elements
of its base in Victoria and NSW. However, if it adopts a more moderate
position, it risks further alienating conservative voters who are being lured
by PHON and, to a lesser extent, former Liberal senator Cory Bernardi’s
new Australian Conservatives party. It is too soon to reach any definitive
judgements, but it seems possible that the increasing polarisation of the
electorate on social issues is re-opening cracks in the party system, and the
Liberals may soon be facing the kind of difficult ideological balancing act
that Labor has dealt with since the rise of the Greens.

Conclusion
This chapter has analysed the Liberal Party’s 2016 election campaign,
examining its strengths and weaknesses, drawing broader conclusions about
the organisational health of the party, and examining the implications of
the election for Turnbull’s leadership and the party’s ideological direction.
I argued that some of the criticisms of the Liberal campaign in 2016
were overstated given the difficult context in which the campaign took
place. However, there were major weaknesses, most notably the failure to
put forward major policies to substantiate the focus on jobs and growth
and address voters’ underlying sense of economic insecurity. I also argued
that the 2016 campaign illustrated some significant problems with the
organisational health of the Liberal Party, particularly with regard to
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      factional control of preselections, the under-representation of women,
      and a weak capacity to engage in grassroots campaigning. The election
      result also left the government in a difficult parliamentary position and
      weakened Turnbull’s leadership. Lastly, I argued that the resurgence of
      PHON and the emergence of NXT in SA points to a possible fracturing
      of the centre-right vote, leading to the possibility that the 2016 election
      will come to be viewed as a turning point in the development of the
      Australian party system.

      References
      Anderson, Stephanie. 2017. ‘Turnbull defends company tax deal
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        html

296
This text is taken from Double Disillusion: The 2016 Australian
Federal Election, edited by Anika Gauja, Peter Chen, Jennifer Curtin
 and Juliet Pietsch, published 2018 by ANU Press, The Australian
               National University, Canberra, Australia.
                     doi.org/10.22459/DD.04.2018.12
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